The European wood-based panel industry is recovering on the back of strong levels of production and demand, manufacturers have concluded.
Members of the European Panel Federation, meeting for the general assembly in Brussels on November 4, said demand accelerated during the first half of 2004, especially for particleboard. They predicted 2004 could match the record year 2000.
But rising costs for resins and energy could soon lead to a substantial increase in panel prices.
Production in the particleboard industry rose by 7.4% compared to a year ago, while demand went up by nearly 9%. Second quarter output grew by 8.6% to 7.7 million m3, the biggest quarterly production rise to date, and demand was boosted by 10%.
Particleboard exports soared by almost 18% due to favourable eastern European and foreign markets, enabling further downward movement in stock levels.
MDF production was 5% higher during the first half, buoyed by the home sales sector. OSB output grew by 20% compared to just 8% a year ago, helped by exports to North America, Asia and other foreign markets.
